SR BANCORP, INC. ANNOUNCES FINANCIAL RESULTS

Rhea-AI Summary

SR Bancorp (NASDAQ: SRBK) reported net income of $886,000 for the three months ended March 31, 2026, or $0.12 per share, versus $537,000, or $0.06 per share, a 65.0% increase. Total assets rose to $1.14 billion at March 31, 2026, loans were $859.1 million, and deposits were $894.3 million. Net interest margin improved to 3.00%. For the nine months ended March 31, 2026, net income was $2.4 million, down 17.5% year-over-year, reflecting lower accretion income and higher provisions.

AI-generated analysis. Not financial advice.

Positive

• Quarter net income up 65.0% to $886,000
• Total assets +5.4% to $1.14 billion (since June 30, 2025)
• Loans +7.8% to $859.1 million (since June 30, 2025)
• Deposits +5.7% to $894.3 million (since June 30, 2025)
• Net interest margin increased 18 bps to 3.00%

Negative

• Nine-month net income down 17.5% to $2.4 million
• Noninterest income down 13.9% for nine months
• Provision for credit losses rose to $305,000 for nine months
• Salaries and employee benefits +14.5% for nine months
• Accretion income fell (nine months: $647,000 vs prior $2.4 million)

News Market Reaction – SRBK

%

1 alert

% News Effect

$163.46M Market Cap

0.9x Rel. Volume

On the day this news was published, SRBK declined NaN%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q1 2026 net income: $886,000 Q1 2026 EPS: $0.12 Q1 2025 net income: $537,000 +5 more

8 metrics

Q1 2026 net income $886,000 Three months ended March 31, 2026

Q1 2026 EPS $0.12 Basic and diluted, three months ended March 31, 2026

Q1 2025 net income $537,000 Three months ended March 31, 2025

Nine-month 2026 net income $2.4 million Nine months ended March 31, 2026

Nine-month 2025 net income $2.9 million Nine months ended March 31, 2025

Total assets $1.14 billion Balance at March 31, 2026

Net loans $859.1 million Balance at March 31, 2026

Allowance for credit losses 0.66% of total loans Ratio at March 31, 2026

Market Reality Check

Price: $18.39 Vol: Volume 55,286 is 1.34x th...

normal vol

$18.39 Last Close

Volume Volume 55,286 is 1.34x the 20-day average of 41,139, indicating elevated interest into the release. normal

Technical Shares at $18.77 are trading above the 200-day MA of $15.82 and near the 52-week high of $18.80.

Peers on Argus

SRBK was up 1.3% with stronger quarterly earnings while peers were mixed: BSBK s...

SRBK was up 1.3% with stronger quarterly earnings while peers were mixed: BSBK slightly down, AFBI and FNWD modestly up, and MGYR and RMBI posting gains around 1%.

Previous Earnings Reports

5 past events · Latest: Jan 28 (Negative)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 28	Quarterly earnings	Negative	-0.6%	Quarter showed lower net income year-over-year despite balance sheet growth.
Oct 30	Quarterly earnings	Negative	-0.3%	Q3 2025 net income nearly halved while expenses and interest costs rose.
Sep 12	Annual results	Positive	-0.1%	Corrected FY2025 report showed strong swing from prior-year loss to profit.
Jul 31	Annual results	Positive	+0.3%	Fourth quarter and full-year 2025 returned to profitability from large loss.
Apr 30	Quarterly earnings	Negative	-0.1%	Q1 2025 net income and margin declined versus prior year after conversion.

Pattern Detected

Earnings headlines have mostly produced stock moves consistent with the earnings quality, with only one positive-report event seeing a slight negative reaction.

Recent Company History

Over the past year, SR Bancorp’s earnings reports have shown balance sheet growth alongside fluctuating profitability. Prior updates highlighted rising assets to about $1.14 billion, expanding loans and deposits, and shifting margins as funding costs changed. While some quarters reported lower net income versus prior periods, full-year 2025 results marked a recovery from earlier losses. Today’s Q1 2026 results, with higher quarterly net income and continued loan and deposit growth, extend that narrative of gradual expansion and margin improvement.

Historical Comparison

-0.2% avg move · Past earnings headlines moved SRBK about -0.16% on average. Today’s 1.3% gain on stronger Q1 2026 pr...

earnings

-0.2%

Average Historical Move earnings

Past earnings headlines moved SRBK about -0.16% on average. Today’s 1.3% gain on stronger Q1 2026 profit and loan growth is modestly more upbeat than usual.

Earnings history shows SRBK moving from FY2024 losses to FY2025 profitability, then navigating mixed quarterly profits while expanding assets, loans and deposits post‑conversion and merger.

Market Pulse Summary

This announcement details Q1 2026 net income of $886,000 (or $0.12 per share), stronger than a year ...

Analysis

This announcement details Q1 2026 net income of $886,000 (or $0.12 per share), stronger than a year earlier, alongside nine‑month net income of $2.4 million versus $2.9 million in the prior period. Assets rose to $1.14 billion, with net loans of $859.1 million and deposits of $894.3 million. Net interest margin improved, while provisions and noninterest expenses also increased. Investors may watch future credit trends, funding costs, and expense discipline across upcoming quarters.

Key Terms

net interest income, net interest rate spread, net interest margin, provision for credit losses, +4 more

8 terms

net interest income financial

"Net interest income increased $629,000, or 8.8%, to $7.8 million..."

Net interest income is the difference between the interest a financial institution earns on loans and investments and the interest it pays on deposits and borrowings. It matters to investors because it is a primary source of profit for banks and similar firms — like the gross margin on a store’s trade — and changes with loan growth, deposit costs and interest rates, so it signals core earning power and sensitivity to rate moves.

net interest rate spread financial

"Net interest rate spread increased 30 basis points to 2.55%..."

Net interest rate spread is the difference between the average interest a lender earns on its loans and the average interest it pays to fund those loans, expressed as a percentage. For investors, it shows how much a financial firm earns from its core lending business — like the markup a shop charges between buying and selling goods — so a wider spread generally means higher profitability from lending, while a narrower spread can signal squeezed earnings or greater risk.

net interest margin financial

"Net interest margin increased 18 basis points to 3.00%..."

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

provision for credit losses financial

"The Company recorded a provision for credit losses of $84,000..."

Provision for credit losses is an amount set aside by a financial institution to cover potential future losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution manage risks and stay financially healthy. For investors, it signals how cautious a lender is about potential loan defaults and can impact the company's profitability and financial stability.

allowance for credit losses financial

"The Company's allowance for credit losses as a percentage of total loans was 0.66%..."

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

noninterest income financial

"Noninterest income increased $4,000, or 0.7%, to $545,000..."

Noninterest income is the money a bank or financial firm earns from activities other than charging interest on loans, such as account fees, transaction charges, advisory and underwriting fees, trading gains, and service income — like a store making extra money from repairs, warranties or delivery charges rather than product sales. It matters to investors because it shows how diversified a company’s revenue is and whether it can withstand changes in interest rates; a strong noninterest income stream can stabilize profits but may also be more variable than steady loan interest.

noninterest expense financial

"Noninterest expense increased $44,000, or 0.6%, for the three months ended March 31, 2026..."

Costs a company incurs that are not tied to borrowing or lending, such as employee pay, rent, technology, marketing, and office supplies. Think of a household: noninterest expense is everything you pay for living and running the home except mortgage or loan interest; for investors, it shows how efficiently a company runs its core operations and directly affects profit margins and the cash available for growth or dividends.

stock-based compensation financial

"increase in salaries and employee benefits expense driven by ... stock-based compensation..."

Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.

AI-generated analysis. Not financial advice.

BOUND BROOK, N.J., April 28, 2026 /PRNewswire/ -- SR Bancorp, Inc. (the "Company") (NASDAQ: SRBK), the holding company for Somerset Regal Bank (the "Bank"), announced net income of $886,000 for the three months ended March 31, 2026, or $0.12 per basic and diluted share, compared to net income of $537,000 for the three months ended March 31, 2025, or $0.06 per basic and diluted share. Excluding $142,000 of net accretion income related to fair value adjustments resulting from the acquisition of Regal Bancorp in September 2023, net income would have been $784,000 for the three months ended March 31, 2026. Excluding $575,000 of net accretion income related to fair value adjustments, net income would have been $124,000 for the three months ended March 31, 2025. See "Non-GAAP Financial Information" contained herein for additional information.

The Company reported net income of $2.4 million for the nine months ended March 31, 2026, or $0.32 per basic and $0.31 per diluted share, compared to a net income of $2.9 million for the nine months ended March 31, 2025, or $0.34 per basic and diluted share. Excluding $647,000 of net accretion income related to fair value adjustments, net income would have been $1.9 million for the nine months ended March 31, 2026. Excluding $2.4 million of net accretion income related to fair value adjustments, net income would have been $1.2 million for the nine months ended March 31, 2025.

Total assets were $1.14 billion at March 31, 2026, an increase of $59.0 million, or 5.4%, from $1.08 billion at June 30, 2025. Net loans were $859.1 million, an increase of $61.9 million, or 7.8%, from $797.2 million at June 30, 2025. Cash and cash equivalents increased $5.9 million, or 10.2%, to $63.7 million at March 31, 2026, from $57.8 million at June 30, 2025. The increases in loans and cash and cash equivalents were funded primarily through increased deposits and an additional $20.0 million of borrowings. Total deposits were $894.3 million, an increase of $48.3 million, or 5.7%, from $846.0 million at June 30, 2025.

Comparison of Operating Results for the Three Months Ended March 31, 2026 and 2025

General. Net income increased $349,000, or 65.0%, to $886,000 for the three months ended March 31, 2026 compared to net income of $537,000 for the three months ended March 31, 2025. Net income for the three months ended March 31, 2026 and 2025 included $142,000 and $575,000, respectively, of net accretion income related to fair value adjustments resulting from the acquisition of Regal Bancorp in September 2023.

Interest Income. Interest income increased $992,000, or 8.6%, to $12.5 million for the three months ended March 31, 2026 from $11.5 million for the three months ended March 31, 2025, due to a $21.5 million increase in the average balance of interest-earning assets and a 29 basis point increase in the yield. These increases resulted from a $1.0 million, or 9.9%, increase in interest income on loans and a $43,000, or 7.2%, increase in interest income on securities, partly offset by a $77,000, or 14.3%, decrease in interest income on interest-bearing deposits at other banks. The increase in interest income on loans was primarily due to a $70.0 million increase in the average balance of loans from $778.5 million for the three months ended March 31, 2025 to $848.5 million for the three months ended March 31, 2026. The increase in interest income on securities was due to a 23 basis point increase in the yield, partially offset by a $9.4 million decrease in the average balance. The decrease in interest income on interest-bearing deposits at other banks was due to a $39.0 million decrease in the average balance of deposits.

Interest Expense. Interest expense increased $363,000, or 8.4%, to $4.7 million for the three months ended March 31, 2026 from $4.3 million for the three months ended March 31, 2025, due to a $68.4 million increase in the average balance of interest-bearing liabilities. The increase in the average balance was primarily due to an increase of $61.0 million, or 20.0%, in the average balance of interest-bearing demand deposits and a $20.0 million, or 66.7%, increase in the average balance of borrowings for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, partially offset by a decrease of $23.2 million in the average balance of savings and club accounts. The increase was primarily due to a 22 basis point increase in the average rate of interest-bearing demand deposits to 1.97% for the three months ended March 31, 2026 from 1.75% for the three months ended March 31, 2025, resulting from competitively priced rates, partially offset by a 40 basis point decrease in the average rate of certificates of deposit.

Net Interest Income. Net interest income increased $629,000, or 8.8%, to $7.8 million for the three months ended March 31, 2026 from $7.2 million for the three months ended March 31, 2025. Net interest rate spread increased 30 basis points to 2.55% for the three months ended March 31, 2026 from 2.25% for the three months ended March 31, 2025. Net interest margin increased 18 basis points to 3.00% for the three months ended March 31, 2026 from 2.82% for the three months ended March 31, 2025. Net interest-earning assets decreased $46.9 million, or 18.1%, to $211.9 million for the three months ended March 31, 2026 from $258.8 million for the three months ended March 31, 2025. The increase in the Company's net interest rate spread and net interest margin were primarily a result of an increase in the yield on interest-earning assets and the decrease in the cost of interest-bearing liabilities.

Provision for Credit Losses. The Company establishes provisions for credit losses, which are charged to operations to maintain the allowance for credit losses at a level it considers necessary to absorb probable credit losses attributable to loans that are reasonably estimable at the balance sheet date. In determining the level of the allowance for credit losses, the Company considers, among other factors, past and current loss experience, evaluations of real estate collateral, economic conditions, the type and volume of lending, adverse situations that may affect a borrower's repayment capacity, trends in delinquent, classified or criticized loans, and other risk factors. The allowance is developed using reasonable and supportable forecasts and quantitative modeling techniques, combined with qualitative factors to address risks not captured in historical data, including emerging loan products or localized economic changes. Actual losses may vary from such estimates as more information becomes available or conditions change. The Company assesses the allowance for credit losses and records provisions for credit losses in the income statement on a quarterly basis.

The Company recorded a provision for credit losses of $84,000 during the three months ended March 31, 2026 reflecting the loan growth during the period, compared to a provision for credit losses of $37,000 for the three months ended March 31, 2025. The Company had no charge-offs for the three months ended March 31, 2026 or 2025, respectively. The Company had no non-performing loans at March 31, 2026 or March 31, 2025. The Company's allowance for credit losses as a percentage of total loans was 0.66% at March 31, 2026 compared to 0.65% at March 31, 2025.

Noninterest Income. Noninterest income increased $4,000, or 0.7%, to $545,000 for the three months ended March 31, 2026 from $541,000 for the three months ended March 31, 2025 primarily due to an increase in the cash surrender value of bank owned life insurance of $4,000 and an increase in the gain on sale of loans of $12,000, offset by a decrease in service charges and fees of $12,000.

Noninterest Expense. Noninterest expense increased $44,000, or 0.6%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 due to a $318,000, or 8.6%, increase in salaries and employee benefits expense driven by annual merit increases and the recognition of employee stock-based compensation during the three months ended March 31, 2026 compared to a partial period of expense during the three months ended March 31, 2025, offset by decreases in other expenses of $184,000 and $46,000 in professional fees.

Income Tax Expense. The provision for income taxes was $282,000 for the three months ended March 31, 2026 compared to $89,000 for the three months ended March 31, 2025. The Company's effective tax rate was 24.1% for the three months ended March 31, 2026 compared to 14.2% for the three months ended March 31, 2025 due to the non-deductibility of expenses related to incentive stock options.

Comparison of Operating Results for the Nine Months Ended March 31, 2026 and 2025 

General. Net income decreased $512,000, or 17.5%, to $2.4 million for the nine months ended March 31, 2026 compared to net income of $2.9 million for the nine months ended March 31, 2025. Net income for the nine months ended March 31, 2026 and 2025 included $647,000 and $2.4 million, respectively, of net accretion income related to fair value adjustments resulting from the acquisition of Regal Bancorp in September 2023.

Interest Income. Interest income increased $2.2 million, or 6.5%, to $36.7 million for the nine months ended March 31, 2026 from $34.5 million for the nine months ended March 31, 2025 due to a $15.1 million increase in the average balance of interest-earning assets, and a 22 basis point increase in the yield. The increase resulted from a $2.5 million, or 8.0%, increase in interest income on loans, offset by a $181,000, or 11.5%, decrease in interest income on interest-bearing deposits at other banks and a $87,000, or 4.7%, decrease in interest income on securities. The increase in interest income on loans was due to a $64.1 million increase in the average balance of loans from $765.9 million for the nine months ended March 31, 2025 to $830.0 million for the nine months ended March 31, 2026. The decrease in interest income on securities was primarily due to a $12.8 million decrease in the average balance of securities resulting from maturities and repayments. The decrease in interest income on interest-bearing deposits at other banks was due to a $36.1 million decrease in the average balance, offset by a 141 basis point increase in the yield.

Interest Expense. Interest expense increased $1.0 million, or 8.4%, to $13.5 million for the nine months ended March 31, 2026 from $12.5 million for the nine months ended March 31, 2025, due to a $61.0 million increase in the average balance of interest-bearing liabilities. The increase in the average balance was due to an increase of $63.5 million, or 22.1%, in the average balance of interest-bearing demand deposits a $20.3 million, or 91.3%, increase in the average balance of borrowings for the nine months ended March 31, 2026 compared to the nine months ended March 31, 2025, partially offset by a decrease of $23.7 million in the average balance of savings and club accounts. The increase was primarily due to a 30 basis point increase in the average rate of interest-bearing demand deposits to 1.93% for the nine months ended March 31, 2026 from 1.63% for the nine months ended March 31, 2025 resulting from competitively priced rates, partially offset by a 49 basis point decrease in the average rate of certificates of deposits.

Net Interest Income. Net interest income increased $1.2 million, or 5.4%, to $23.2 million for the nine months ended March 31, 2026 from $22.0 million for the nine months ended March 31, 2025. Net interest rate spread increased 22 basis points to 2.56% for the nine months ended March 31, 2026 from 2.34% for the nine months ended March 31, 2025. Net interest margin increased 11 basis points to 3.04% for the nine months ended March 31, 2026 from 2.93% for the nine months ended March 31, 2025. Net interest-earning assets decreased $45.9 million, or 17.5%, to $216.3 million for the nine months ended March 31, 2026 from $262.2 million for the nine months ended March 31, 2025. The increase in the Company's net interest rate spread and net interest margin were primarily a result of an increase in the yield on interest-earning assets.

Provision for Credit Losses. The Company recorded a provision for credit losses of $305,000 during the nine months ended March 31, 2026 reflecting the loan growth during the period, compared to a recovery for credit losses of $105,000 for the nine months ended March 31, 2025, which reflected updates made to certain qualitative factors in the calculation of the Company's allowance. The Company had no charge-offs for the nine months ended March 31, 2026 or 2025, respectively. The Company had no non-performing loans at March 31, 2026 or March 31, 2025. The Company's allowance for credit losses as a percentage of total loans was 0.66% at March 31, 2026 compared to 0.65% at March 31, 2025.

Noninterest Income. Noninterest income decreased $274,000, or 13.9%, to $1.7 million for the nine months ended March 31, 2026 from $2.0 million for the nine months ended March 31, 2025, primarily due to a decrease in service charges and fees of $110,000 and a decrease in other income of $98,000 during the nine months ended March 31, 2026 compared to the nine months ended March 31, 2025.

Noninterest Expense. Noninterest expense increased $1.1 million, or 5.2%, to $21.4 million for the nine months ended March 31, 2026 from $20.3 million for the nine months ended March 31, 2025 predominantly due to a $1.5 million, or 14.5%, increase in salaries and employee benefits expense driven by the recognition of stock-based compensation during the nine months ended March 31, 2026 compared to a partial period of expense during the nine months ended March 31, 2025, as well annual merit increases in employee compensation. The increase in salaries and employee benefits was partially offset by decreases of $77,000 in data processing expenses, $85,000 in insurance expenses and $335,000 in other expenses.

Income Tax Expense. The provision for income taxes was $738,000 for the nine months ended March 31, 2026, compared to $776,000 for the nine months ended March 31, 2025. The Company's effective tax rate was 23.4% for the nine months ended March 31, 2026 compared to 21.0% for the nine months ended March 31, 2025.

Comparison of Financial Condition at March 31, 2026 and June 30, 2025 

Assets. Assets increased $59.0 million, or 5.4%, to $1.14 billion at March 31, 2026 from $1.08 billion at June 30, 2025. The increase was driven primarily by new loan originations, resulting in a net increase of $61.9 million in loans receivable, as well as an increase in cash and cash equivalents of $5.9 million primarily due to an increase in deposits and borrowings.

Cash and Cash Equivalents. Cash and cash equivalents increased $5.9 million, or 10.2%, to $63.7 million at March 31, 2026 from $57.8 million at June 30, 2025 due to an increase in deposits and borrowings from the Federal Home Loan Bank of New York.

Securities. Securities held-to-maturity decreased $7.0 million, or 5.0%, to $134.8 million at March 31, 2026 from $141.8 million at June 30, 2025. The decrease was primarily due to principal repayments and maturities, partially offset by the purchase of a $6.0 million subordinated note issued by another financial institution.

Loans. Loans receivable, net, increased $61.9 million, or 7.8%, to $859.1 million at March 31, 2026 from $797.2 million at June 30, 2025, driven by commercial loan growth of $33.9 million, residential mortgage loan growth of $27.0 million and consumer loan growth of $1.0 million as a result of strong market demand.

Deposits. Deposits increased $48.3 million, or 5.7%, to $894.3 million at March 31, 2026 from $846.0 million at June 30, 2025. Increases in interest-bearing deposit accounts resulted from the Bank having raised rates on certain interest-bearing deposit accounts in an effort to remain competitive in the market area. At March 31, 2026, $111.3 million, or 12.4%, of total deposits consisted of noninterest-bearing deposits. At March 31, 2026, $164.6 million, or 18.4%, of total deposits were uninsured.

Borrowings. During the nine months ended March 31, 2026, the Company borrowed an additional $20.0 million from the Federal Home Loan Bank of New York to provide additional liquidity to fund new loans. At March 31, 2026 and 2025, the Company had $50.0 million and $30.0 million in outstanding borrowings, respectively.

Equity. Equity decreased $9.3 million, or 4.8%, to $184.5 million at March 31, 2026 from $193.8 million at June 30, 2025. The decrease was primarily due to the repurchase of 761,229 shares of common stock at a cost of $12.0 million, partially offset by net earnings of $2.4 million.

About Somerset Regal Bank 

Somerset Regal Bank is a full-service New Jersey commercial bank headquartered in Bound Brook, New Jersey that operates 14 branches in Essex, Hunterdon, Middlesex, Morris, Somerset and Union Counties, New Jersey. At March 31, 2026, Somerset Regal Bank had $1.14 billion in total assets, $859.1 million in net loans, $894.3 million in deposits and total equity of $184.5 million. Additional information about Somerset Regal Bank is available on its website, www.somersetregalbank.com.

Forward-Looking Statements 

Certain statements contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, which are based on certain current assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words "may," "will," "should," "could," "would," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target" and similar expressions. Forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, inflation, general economic conditions or conditions within the securities markets, including potential recessionary conditions, the impact of a potential government shutdown, real estate market values in the Bank's lending area changes in the quality of our loan and security portfolios, increases in non-performing and classified loans, economic assumptions or changes in our methodology that may impact our allowance for credit losses calculation, changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio, the availability of low-cost funding, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the imposition of tariffs or other domestic or international governmental policies and retaliatory responses, a failure in or breach of the Company's operational or security systems or infrastructure, including cyber attacks, the failure to maintain current technologies, failure to retain or attract employees and legislative, accounting and regulatory changes that could adversely affect the business in which the Company and the Bank are engaged. Our actual future results may be materially different from the results indicated by these forward-looking statements. Except as required by applicable law or regulation, we do not undertake, and we specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statement.

 

SR Bancorp, Inc. and Subsidiaries  Consolidated Statements of Financial Condition March 31, 2026 (Unaudited) and June 30, 2025 (In thousands, except for share data)
		March 31, 2026			June 30, 2025
Assets
Cash and due from banks		$	4,662		$	3,945
Interest-bearing deposits at other banks			59,019			53,834
Total cash and cash equivalents			63,681			57,779
Securities held-to-maturity, at amortized cost			134,781			141,845
Equity securities, at fair value			24			37
Loans receivable, net of allowance for credit losses of $5,667 and $5,362, respectively			859,053			797,166
Premises and equipment, net			4,938			4,942
Right-of-use asset			2,958			3,156
Restricted equity securities, at cost			3,508			2,608
Accrued interest receivable			3,462			3,072
Bank owned life insurance			38,123			36,607
Goodwill and intangible assets			25,810			26,708
Other assets			7,112			10,485
Total assets		$	1,143,450		$	1,084,405
Liabilities and Equity
Liabilities
Deposits:
Noninterest-bearing		$	111,260		$	114,107
Interest-bearing			783,080			731,915
Total deposits			894,340			846,022
Borrowings			50,000			30,000
Advance payments by borrowers for taxes and insurance			8,999			8,736
Accrued interest payable			210			223
Lease liability			2,999			3,211
Other liabilities			2,452			2,433
Total liabilities			959,000			890,625
Equity
Preferred stock, $0.01 par value, 5,000,000 shares authorized, none issued			—			—
Common stock, $0.01 par value, 50,000,000 authorized; 8,151,905 and 8,875,170 shares issued and outstanding as of March 31, 2026 and June 30, 2025, respectively			81			89
Additional paid-in capital			69,997			80,843
Retained earnings			121,753			120,505
Unearned compensation ESOP			(6,370)			(6,655)
Accumulated other comprehensive loss			(1,011)			(1,002)
Total stockholders' equity			184,450			193,780
Total liabilities and stockholders' equity		$	1,143,450		$	1,084,405

 

SR Bancorp, Inc. and Subsidiaries Consolidated Statements of Income For the Three and Nine Months Ended March 31, 2026 and March 31, 2025  (In thousands, except per share data, unaudited)
		Three Months Ended						Nine Months Ended
		March 31,						March 31,
		2026			2025			2026			2025
Interest Income
Loans, including fees		$	11,372		$	10,346		$	33,563		$	31,069
Securities:
Taxable			643			600			1,761			1,848
Interest bearing deposits at other banks			460			537			1,397			1,578
Total interest income			12,475			11,483			36,721			34,495
Interest Expense
Deposits:
Demand			1,798			1,332			5,080			3,500
Savings and time			2,399			2,584			7,192			8,136
Borrowings			465			383			1,248			842
Total interest expense			4,662			4,299			13,520			12,478
Net Interest Income			7,813			7,184			23,201			22,017
Provision (Credit) for Credit Losses			84			37			305			(105)
Net Interest Income After Provision (Credit) for Credit Losses			7,729			7,147			22,896			22,122
Noninterest Income
Service charges and fees			218			230			672			782
Increase in cash surrender value of bank owned life insurance			263			259			796			783
Fees and service charges on loans			35			35			90			128
Unrealized (loss) gain on equity securities			(9)			3			(12)			7
Gain on sale of loans			12			—			29			51
Other			26			14			116			214
Total noninterest income			545			541			1,691			1,965
Noninterest Expense
Salaries and employee benefits			3,999			3,681			11,776			10,288
Occupancy			590			557			1,657			1,681
Furniture and equipment			325			346			990			924
Data processing			516			552			1,565			1,642
Advertising			119			97			361			264
FDIC premiums			120			120			360			360
Directors fees			100			93			298			287
Professional fees			421			467			1,366			1,423
Insurance			115			133			366			451
Telephone, postage and supplies			166			197			535			569
Other			635			819			2,162			2,497
Total noninterest expense			7,106			7,062			21,436			20,386
Income Before Income Tax Expense			1,168			626			3,151			3,701
Income Tax Expense			282			89			738			776
Net Income		$	886		$	537		$	2,413		$	2,925
Basic earnings per share		$	0.12		$	0.06		$	0.32		$	0.34
Diluted earnings per share		$	0.12		$	0.06		$	0.31		$	0.34
Weighted average number of common shares outstanding - basic			7,381,573			8,303,795			7,606,406			8,567,520
Weighted average number of common shares outstanding - diluted			7,556,692			8,315,030			7,723,143			8,572,283

 

SR Bancorp, Inc. and Subsidiaries Selected Ratios (Dollars in thousands, except per share data)
		Three Months Ended				Nine Months Ended
		March 31, 2026		March 31, 2025		March 31, 2026		March 31, 2025
		(Unaudited)				(Unaudited)
Performance Ratios: (1)
Return on average assets (2)		0.31 %		0.20 %		0.29 %		0.56 %
Return on average equity (3)		1.83 %		1.13 %		1.66 %		3.04 %
Net interest margin (4)		3.00 %		2.82 %		3.04 %		2.93 %
Net interest rate spread (5)		2.55 %		2.25 %		2.56 %		2.34 %
Efficiency ratio (6)		85.02 %		91.41 %		86.12 %		85.01 %
Total gross loans to total deposits		96.42 %		94.06 %		96.42 %		94.06 %
Asset Quality Ratios:
Allowance for credit losses on loans as a percentage of total gross loans		0.66 %		0.65 %		0.66 %		0.65 %
Allowance for credit losses on loans as a percentage of non-performing loans (7)		N/A		N/A		N/A		N/A
Net (charge-offs) recoveries to average outstanding loans during the period (8)		N/A		N/A		N/A		N/A
Non-performing loans as a percentage of total gross loans (7)		N/A		N/A		N/A		N/A
Non-performing assets as a percentage of total assets (9)		N/A		N/A		N/A		N/A
Other Data:
Tangible book value per share (10)		$19.46		$18.29		$19.46		$18.29
Tangible common equity to tangible assets		14.19 %		16.05 %		14.19 %		16.05 %

(1)	Performance ratios are annualized.
(2)	Represents net income divided by average total assets.
(3)	Represents net income divided by average equity.
(4)	Represents net interest income as a percentage of average interest-earning assets.
(5)	Represents net interest rate spread as a percentage of average interest-earning assets.
(6)	Represents non-interest expense divided by the sum of net interest income and non-interest income.
(7)	This ratio is not applicable for the three and nine months ended March 31, 2025 as the Company had no non-performing loans as of those periods.
(8)	This ratio is not applicable for the three and nine months ended March 31, 2026 and 2025 as the Company had no charge-offs or recoveries as of those periods.
(9)	This ratio is not applicable for the three and nine months ended March 31, 2025 as the Company had no non-performing assets as of those periods.
(10)	Tangible book value per share is calculated based on total stockholders' equity, excluding intangible assets (goodwill and core deposit intangibles), divided by total shares outstanding as of the balance sheet date. Goodwill and core deposit intangibles were $25,810 and $27,039 at March 31, 2026 and March 31, 2025, respectively.

 

NON-GAAP FINANCIAL INFORMATION

This release contains financial information determined by methods other than in accordance with generally accepted accounting principles ("GAAP").  Management uses these non-GAAP measures because we believe that they may provide useful supplemental information for evaluating our operations and performance, as well as in managing and evaluating our business and in discussions about our operations and performance.  Management believes these non-GAAP measures may also provide users of our financial information with a meaningful measure for assessing our financial results, as well as a comparison to financial results for prior periods. These non-GAAP measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP and are not necessarily comparable to other similarly titled measures used by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included below.

		Three Months Ended						Nine Months Ended
		March 31,			March 31,			March 31,			March 31,
		2026			2025			2026			2025
Net Income		$	886		$	537		$	2,413		$	2,925
Adjustments for non-recurring items:
Net accretion, pre-tax		$	(142)		$	(575)		$	(647)		$	(2,396)
Subtotal		$	(142)		$	(575)		$	(647)		$	(2,396)
Tax expense		$	(40)		$	(162)		$	(182)		$	(674)
Net of items above, after-tax		$	(102)		$	(413)		$	(465)		$	(1,722)
Net Income, adjusted		$	784		$	124		$	1,948		$	1,203

 

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SOURCE SR Bancorp, Inc.

FAQ

What did SRBK report for net income in Q1 2026?

SRBK reported net income of $886,000 for Q1 2026. According to the company, that equals $0.12 per basic and diluted share and reflects higher net interest income and accretion adjustments.

How large were SRBK's total assets and loans at March 31, 2026?

Total assets were $1.14 billion and net loans were $859.1 million at March 31, 2026. According to the company, loan growth was driven by commercial and residential originations since June 30, 2025.

What changed in SRBK's net interest margin and yield in Q1 2026?

Net interest margin rose to 3.00% in Q1 2026, up 18 basis points. According to the company, the increase resulted from higher yields on interest-earning assets and lower cost of interest-bearing liabilities.

Why did SRBK's nine-month net income decline year-over-year?

Nine-month net income declined to $2.4 million, down 17.5% year-over-year. According to the company, the decrease reflected lower accretion income compared with the prior period and higher provisions for credit losses.

How did deposits and borrowings change for SRBK through March 31, 2026?

Deposits increased to $894.3 million, up 5.7% since June 30, 2025, and borrowings rose by $20.0 million. According to the company, higher deposit rates and Federal Home Loan Bank borrowings funded loan and liquidity growth.